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Prepare the datamediumMultiple ChoiceObjective-mapped

PL-300 Prepare the data Practice Question

Exhibit

Refer to the exhibit.
```json
{
  "dataSources": [
    {
      "connectionDetails": {
        "server": "myserver.database.windows.net",
        "database": "SalesDB",
        "authenticationKind": "Key",
        "options": {}
      },
      "datasourceType": "SQL"
    }
  ],
  "pbiServiceConfiguration": {
    "useSingleSignOn": false,
    "gatewayClusterId": "12345",
    "gatewayClusterName": "OnPremGateway"
  }
}
```

You are reviewing a Power BI dataset configuration in the service. The JSON shows a data source for an Azure SQL Database. Which statement about the configuration is correct?

⚠ Common exam trap

Test-takers frequently assume any Azure SQL Database connection automatically uses Azure AD SSO or requires a gateway, but the JSON's credential type explicitly reveals the authentication method, and cloud-native sources like Azure SQL Database do not inherently need a gateway.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

The dataset uses cloud-only data sources and does not require a gateway.

Azure SQL Database is a cloud-native data source in Power BI, and cloud data sources do not require a gateway, whether using DirectQuery or Import. The configuration shown in the JSON is for an Azure SQL Database, which is inherently cloud-only, so no gateway is needed. Option A is incorrect because key-based authentication is not supported for Azure SQL Database; using 'Key' credential type would cause a connection failure. Option B is incorrect because the JSON does not indicate single sign-on (no 'SingleSignOn' property set to true). Option C is incorrect because a cloud gateway is not required for Azure SQL Database; it is only needed for on-premises or virtual-network sources.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • The dataset uses key-based authentication and does not use single sign-on.

    Why it's wrong here

    Key-based authentication is not a supported credential type for Azure SQL Database in Power BI; valid options are SQL authentication (username/password) or Azure AD OAuth 2.0. If the JSON payload tried to use a 'Key' credential, the connection would fail immediately. The configuration likely stores a username/password or OAuth token, not a key, and although single sign-on is not enabled, that is irrelevant to the authentication mechanism being used.

  • The dataset uses single sign-on with Azure AD.

    Why it's wrong here

    For single sign-on (SSO) to be active, the data source connection in Power BI must explicitly include the 'SingleSignOn' property set to true, typically in a DirectQuery source using Azure AD authentication. The described JSON configuration does not show that property, so SSO is not enabled. Moreover, SSO would require Azure AD authentication to be configured, which is separate from the credential type and would be represented by a different JSON structure than what is present.

  • The dataset is configured to use a cloud gateway for direct query.

    Why it's wrong here

    Power BI does not have a concept of a 'cloud gateway' – the only gateway types are the on-premises data gateway (standard mode) and the personal gateway. A gateway is only required when a data source resides on-premises or in a virtual network that blocks direct cloud access. Since Azure SQL Database is a cloud service, DirectQuery traffic flows directly from the Power BI service to the database without any gateway in the path, so this option incorrectly assumes a gateway-based setup.

  • The dataset uses cloud-only data sources and does not require a gateway.

    Why this is correct

    The dataset points to Azure SQL Database, a fully managed cloud PaaS service, so Power BI can connect directly over the internet without any on-premises data gateway. Neither Import mode nor DirectQuery requires a gateway for cloud-only sources, because the data source is not behind a corporate firewall and is already reachable via standard cloud endpoints. This is why the configuration correctly shows no gateway association and the dataset functions normally.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This PL-300 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PL-300 exam.